How Cyber Crooks Turn Your Data Into Cash

This week's data breach at Citigroup in which 200,000 accounts were compromised is just the latest in a lengthy list of high-profile leaks this year, including the ongoing assault against Sony and its network. But once these bundles of identity information and credit card numbers are stolen, where do they go? PM traces the twisted path by which all that stolen data becomes cash for crooks.

PRINTING PRESS

Carders who purchase complete Track 2 credit card data (both the card number and the CVV security code) can print their own magnetic-stripe cards, then hire "money mules" (often foreign students on J-1 visas) to withdraw cash from ATMs.

OFFSHORE CONNECTION

Once the stolen account is turned into cash, the mules either wire the money overseas via services such as Western Union, or convert it to e-currency via services such as e-gold and PayPal and transfer it to the overseas accounts of criminal syndicates. If the mules get caught by law enforcement, they usually have no idea who hired them.

THE EBAY ROUTE

Money mules are also recruited by carders through make-money-from-home scams. The mules buy goods online with stolen credit card or PayPal accounts, get them shipped to P.O. boxes or abandoned addresses and then resell the goods online.